Category: Core concept

Why Actions Speak Louder Than Words in Customer Discovery

Shashank

Customer discovery is the process of gathering feedback from potential customers to identify and validate a problem and a solution for a product or service. While customer feedback is crucial in this process, it is important to note that actions and choices of potential customers are often more important than what they say. This is because people’s actions and choices are a better reflection of their true preferences and behavior, rather than what they say they will do.

For example, a potential customer may say they are interested in a particular product, but if they never actually purchase it, then their words are not as important as their lack of action. In this case, it may be necessary to dig deeper and understand the reasons behind their lack of action, such as pricing, product features, or timing.

One way to gather insights into potential customers’ actions and choices is through observation and experimentation. By observing how potential customers interact with a product or service, and experimenting with different features or pricing strategies, it is possible to identify what truly resonates with them.

A landing page MVP is a simple web page that is designed to test the viability of a product or service before investing in a full-scale launch.

To create an effective landing page MVP, it is crucial to understand the needs and preferences of potential customers. Customer discovery can help in identifying the target audience and the problem that the product or service is solving. This information can be used to create a landing page that speaks directly to the target audience and clearly communicates the value proposition of the product or service.

Observing how potential customers interact with the landing page can provide valuable insights into the viability of the product or service. By tracking metrics such as bounce rate, time spent on page, and conversion rate, it is possible to gauge the level of interest and engagement from potential customers. Experimentation with different landing page designs, messaging, and pricing strategies can also help in identifying what resonates best with the target audience.

The iterative process of customer discovery is particularly relevant when using a landing page MVP. By continuously testing and refining the landing page based on customer feedback, it is possible to create a more effective MVP that accurately represents the product or service and generates meaningful feedback.

In conclusion, while customer feedback is important in customer discovery, it is critical to also consider the actions and choices of potential customers. By focusing on experimentation, observation, and tracking progress, it is possible to refine and validate a product or service that truly meets the needs and preferences of customers.

The Empathy-Boosting Power of Noting User Appreciation

Shashank

When conducting customer discovery, it’s important to not only focus on what your potential customers say, but also on their emotions, attitudes, and behaviors. One way to do this is by noting something that you appreciate about each user you interact with. This simple practice can help increase your interest and empathy towards them, and ultimately lead to better insights and understanding of their needs and preferences.

Here are some ways that noting something you appreciate about a user can enhance your customer discovery process:

  1. Builds rapport: When you take the time to appreciate something about your potential customer, it shows that you value them as a person and not just as a source of information. This can help build rapport and trust, which is crucial for effective communication and collaboration.
  2. Humanizes the process: By focusing on the human aspect of customer discovery, you are less likely to see your users as mere data points or statistics. This can help you connect with them on a more personal level and better understand their unique perspectives and experiences.
  3. Increases curiosity: Noting something that you appreciate about a user can help increase your curiosity and interest in learning more about them. This can lead to deeper and more meaningful conversations, which can uncover valuable insights that might have been missed otherwise.
  4. Encourages active listening: When you appreciate something about a user, you are more likely to actively listen to what they are saying. This can help you pick up on subtle cues and emotions that can provide additional context and insights.
  5. Promotes empathy: When you appreciate something about a user, it can help you see things from their perspective and understand their needs and preferences on a deeper level. This can ultimately lead to more empathetic product design and development.

Overall, noting something that you appreciate about a user can be a powerful tool for enhancing your customer discovery process. It can help build rapport, humanize the process, increase curiosity, encourage active listening, and promote empathy. So the next time you interact with a potential customer, take a moment to appreciate something about them and see how it enhances your understanding and insights.

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The Untapped Market: Non-Users as Potential Customer Segment

Shashank

In the world of business and product development, it’s common practice to identify target audience segments based on their behaviors, demographics, psychographics, and other characteristics. However, there’s a segment of users who often get overlooked or ignored – those who do not use any existing solutions to accomplish their job or desired outcomes. These users are important to consider as a potential target audience segment for several reasons.

Firstly, these users represent a potential untapped market. By not using existing solutions, they are likely experiencing pain points and difficulties in achieving their desired outcomes. If a new solution can effectively address these pain points and make their job easier, they could become loyal customers and advocates for the product. This segment may also be less price-sensitive, as they don’t have a current solution to compare the price to.

Secondly, these users may be more open to innovation and disruption. By not using existing solutions, they are already demonstrating a willingness to try something new and different. If a new solution can effectively demonstrate its value and benefits, these users may be more willing to adopt it compared to users who are already using an existing solution.

Thirdly, these users may provide valuable insights into the flaws and limitations of existing solutions. By understanding their pain points and struggles, new solutions can be designed and developed to address these issues and provide a better user experience.

One example of a target audience segment who do not use existing solutions is the “unbanked” population. These are individuals who do not have access to traditional banking services such as checking accounts, savings accounts, and loans. In the United States, there are over 6 million unbanked households. In developing countries, the number is even higher.

For this segment, traditional banking solutions are not accessible or viable options. This has led to the rise of alternative solutions such as mobile banking, prepaid debit cards, and peer-to-peer lending platforms. These solutions have been successful in reaching the unbanked population and providing them with financial services that they previously did not have access to.

Another example of a target audience segment who do not use existing solutions is the “DIY” or “maker” community. These are individuals who enjoy creating and building things themselves, rather than purchasing pre-made solutions. This segment is passionate about innovation and creating new solutions to solve their own problems.

For this segment, traditional off-the-shelf solutions may not meet their specific needs or requirements. Instead, they prefer to build their own solutions using open-source software, hardware, and tools. This has led to the rise of communities and marketplaces such as GitHub, Thingiverse, and Hackster.io. These platforms provide the DIY community with resources and tools to create their own solutions and share them with others.

When considering these examples, it’s clear that target audience segments who do not use existing solutions represent a significant opportunity for new solutions and innovations. By understanding their pain points, motivations, and behaviors, new solutions can be designed and developed to effectively address their needs and provide a better user experience.

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Why Minimum Viable Products (MVPs) often Fail

Shashank

Minimum Viable Products (MVPs) can often fail when they don’t take into account the desired customer outcome, including the customer goal, appropriate experience, and pain point it solves.

One common mistake that leads to MVP failure is focusing too much on the product itself and not enough on the customer’s needs and desired outcome. An MVP that is built solely based on the product’s features and functions without considering how it addresses the customer’s goals and pain points is unlikely to be successful.

Another mistake is not properly testing the MVP with target customers. An MVP that is not validated by the target customers may fail to address their desired outcomes and pain points, leading to low adoption rates and low customer satisfaction.

A third mistake is not incorporating the appropriate experience into the MVP. The customer’s experience with the product is just as important as the product itself. An MVP that is difficult to use or does not provide a positive customer experience will fail to meet the desired outcome, regardless of how well it addresses the customer’s goals and pain points.

Finally, MVPs can fail when they don’t properly address the customer’s pain points. If the MVP does not solve a significant pain point for the customer, they may not see the value in using the product, leading to low adoption rates and high churn rates.

To avoid these pitfalls, startups should focus on understanding their target customers’ desired outcomes and pain points, and build MVPs that address those needs while incorporating the appropriate experience. Testing and validating the MVP with target customers can help ensure that the product meets their desired outcome and provides value. By taking a customer-centric approach to building MVPs, startups can increase their chances of success and achieve early traction in the market.

Here are 5 examples of real-world companies that failed to meet their target customer goals with their minimum viable products:

  1. Color Labs: Color Labs was a social networking app that aimed to bring together photos, videos, and text from various social media platforms in one place. However, it failed to meet the target customer goal of providing a user-friendly interface, leading to poor user engagement and ultimately the failure of the app.
  2. Juicero: Juicero was a startup that created a juicing machine that used pre-packaged juice packets. However, the product failed to meet the target customer goal of convenience, as the machine required a Wi-Fi connection to function and the juice packets were found to be easily squeezed by hand, making the machine unnecessary.
  3. Homejoy: Homejoy was a startup that provided on-demand cleaning and home services. Despite raising over $40 million in funding, the company failed to meet the target customer goal of quality, as customers complained about poor service and inconsistent results.
  4. Kano: Kano was a startup that created DIY computer kits aimed at children. The company failed to meet the target customer goal of ease of use, as the kits were found to be overly complicated and difficult to assemble.
  5. Tilt: Tilt was a social payment app that aimed to make it easy for groups to collect and track money. However, the product failed to meet the target customer goal of security, as the app was found to have vulnerabilities that could be exploited by hackers.

And, here are five real-world examples of MVPs that failed to provide an appropriate experience for the target customer:

  1. Juicero: Juicero was a startup that produced a juicing machine that was supposed to revolutionize the way people made juice at home. However, the machine was extremely expensive, and the juice packs that were required to use it were also very costly. In addition, customers found that they could get the same quality of juice by simply squeezing the juice packs by hand, without the need for the expensive machine.
  2. Color Genomics: Color Genomics was a startup that offered genetic testing services to customers. The company’s MVP was a kit that customers could use to collect a saliva sample, which was then sent to the company for analysis. However, customers reported that the process of collecting the sample was difficult and uncomfortable, leading to a poor user experience.
  3. Teforia: Teforia was a startup that produced a high-end tea-brewing machine. However, the machine was very expensive, and customers found that they could get the same quality of tea by simply brewing it in a traditional tea pot. In addition, the machine was difficult to clean, which also detracted from the user experience.
  4. Lily Robotics: Lily Robotics was a startup that produced a drone that was designed to follow its owner around and capture video footage. However, the company’s MVP was plagued by technical issues, and customers reported that the drone was difficult to control and prone to crashing. In addition, the price of the drone was very high, which made it difficult for many potential customers to justify the cost.
  5. Leap Motion: Leap Motion was a startup that produced a device that allowed users to control their computers with hand gestures. However, customers found that the device was not very accurate, and the user experience was frustrating. In addition, the device required special software to be installed on the user’s computer, which made it difficult to use for many potential customers.

Finally, here are 5 examples of real-world startups whose MVPs failed to address the target customer pain points:

  1. Juicero: Juicero was a startup that created a $400 juicer that required proprietary juice packets. However, the company failed to recognize that customers were more interested in convenience and affordability, rather than expensive, high-tech juicing machines. The company ultimately shut down in 2017.
  2. Dinner Lab: Dinner Lab was a startup that aimed to revolutionize the dining experience by hosting pop-up dinners in unique locations. However, the company failed to recognize that customers were more interested in consistent, high-quality food and service rather than unique locations. The company filed for bankruptcy in 2016.
  3. Tilt: Tilt was a startup that aimed to make group payments easier by allowing users to pool money for events or gifts. However, the company failed to recognize that customers were more interested in security and privacy of their financial information. The company was acquired by Airbnb in 2017.
  4. Secret: Secret was a startup that created an anonymous messaging app where users could share secrets with their contacts. However, the company failed to recognize that customers were more interested in positive and supportive social interactions rather than anonymous gossip. The company shut down in 2015.
  5. Yik Yak: Yik Yak was a startup that created an anonymous social media app for college students. However, the company failed to recognize that customers were more interested in positive social interactions and community building, rather than anonymous posting. The company shut down in 2017.